Kathmandu. The actuarial analyst report of the Nepal Insurance Authority (NIA) provides a divided analysis of the condition of the actuarial analyst workforce in Nepal.
More than 86% of those surveyed consider actuarial analysts essential to their companies, and more than 90% believe that these professionals are contributing significantly relative to the cost of employment to them. Still, analysts themselves paint a picture of a more complicated situation within insurance companies for career development.
The survey found that actuarial analysts are primarily involved in risk-based capital (RBC) reporting, solvency assessment, actuarial valuation and insurance product development. However, their involvement in core actuarial functions – particularly modelling, profit testing and liability assessment – is significantly limited. In a profession where modeling is basic, it represents a significant gap in the development of practical skills.
“Their potential is underutilised due to a lack of training opportunities, limited career development pathways, and inadequate retention measures,” the report noted. ’
The report’s findings regarding compliance with actuarial recruitment 2024 guidelines are mixed.
All life and non-life insurers have appointed at least one actuarial analyst. Despite the provisions in the guidelines, only 60% of analysts have kept formal work logs. Half of them have not received any on-the-job training opportunities from their appointed actuaries. Half of those who have the opportunity have received training for only a short period of time, beyond the minimum duration of 10 hours set by the guidelines. Only two-thirds of companies have included the actuary’s response to an actuarial analyst’s performance review.
Analysts are reporting a level of satisfaction. While most actuaries are satisfied with their exposure to actuarial work and the supervision and guidance they receive, they have clearly expressed dissatisfaction with training opportunities, career development, and remuneration and incentives. According to the report, this is exactly what is lacking in these three pillars of professional development – learning, advancement and the salary system.
Most actuarial analysts are early-career professionals with less than two years of postgraduate experience, and most have passed three to six actuarial exams, the study noted. They put them at the midpoint of the qualification journey. Which can take a decade or more to complete.
Only a small number of working analysts are close to fellowship status. This profile makes consistent workplace investment not only desirable but important.
To be recognized as an appointed actuary, one must reach fellowship status. That is, you must have passed the examination from an accredited international actuary organization and get a certificate. To get the actuarial certificate, one has to pass up to 16 papers. A good investment is required to study and participate in the examination related to each paper.
If the employer insurer invests on their behalf, they are mentally prepared to stay in the job for a long time. However, they are not ready to make such an investment. For this, there will be no progress until the Authority takes strict action against the insurers who do not invest in the training, capacity and career development of the employees.
Most of the insurers have not spent the required amount for training and training required to enhance the capacity of the employees. Despite repeatedly ignoring the directive, the authority has been reluctant to take action against the CEO and the Board of Directors of the insurer.
